Heikin Ashi Candles
We recommend using this structure of candle for more accuracy when using AlgoPro V1, V1.2, or Reversal Trader V1 - But not for any AlgoPro Scalper or Swing Bots.
Heikin Ashi candlesticks gives a smoother appearance by reducing some of the market noise, hence making it easier to spots trends and reversals. There is a tendency with Heikin-Ashi for the candles to stay red during a downtrend and green during an uptrend. Heikin Ashi calculation uses a formula based on two-period averages.
How to read Heikin Ashi candles. Green candles indicate an uptrend and if there are no lower wicks (shadows) the move can be assumed a strong uptrend. Red candles indicate a downtrend and if there are no higher wicks (shadows) the move can be assumed a strong downtrend.
Candles with a small body surrounded by upper and lower shadows indicate a potential trend change or trend pause.
Heikin Ashi candles do not show the exact open and close prices for a particular time period because they are averaged - hence those who need to exploit quick price moves may find Heikin-Ashi charts are not responsive enough to be useful. However many users of AlgoPro prefer to use our system with this candle structure.